Hochschild Mining PLC shares rose by 5% after selling its Arcata mine and Azuca project to Sierra Caraz. This sale is part of the company’s strategy to prioritize key assets in Peru and maintain operations in Brazil and Argentina. Arcata, a silver mine, was active until 2019, while Azuca also targets silver production.
Hochschild Mining PLC experienced a 5% increase in its shares during early trading on Wednesday, subsequent to the announcement of the completion of its asset divestiture. The company has sold its former Arcata mine and the Azuca project to Sierra Caraz for an undisclosed amount. This decision aligns with Hochschild’s ongoing strategy to concentrate on its principal assets located in Peru, specifically the Inmaculada and Pallancata-Royropata projects, along with its operations in Brazil and Argentina.
The Arcata mine, a silver-dominant underground operation in Arequipa, Peru, was in production from 1964 until it was placed under care and maintenance in 2019. Conversely, the Azuca project, situated 60 kilometers from Arcata, focuses on silver production as well. Sierra Caraz, the acquiring entity, is associated with Sierra Sun Precious Metals, a private company engaged in mining operations throughout Peru. In early trading, Hochschild’s stock value increased by 9.44p, reaching 193.44p.
In summary, Hochschild Mining PLC’s recent sale of its non-core assets, including the Arcata mine and the Azuca project, signifies a strategic shift towards enhancing its focus on core operations in Peru, Brazil, and Argentina. The positive market reaction, reflected in a 5% rise in share value, underscores investor confidence in this direction.
Original Source: www.proactiveinvestors.co.uk
